model unwrapping

[blazing-inferno]

ok, i made a small sword in mikshape and now im trying to figure out how to unwrap it so i can skin it. i have lithunwrap but i cant get it to do what i want. i can make a unwrapped picture but i cant paint on it unless i use a the lasso tool to select the reigns. but it still doesn't show up when i import them into the game. the wrap still shows up as black. any ideas what im doing wrong?